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It's all speculation of course, but I suspect they could probably create a "disruption index" for every company based on sudden changes in turnover or profile a
by d4nt 16y ago
It's all speculation of course, but I suspect they could probably create a "disruption index" for every company based on sudden changes in turnover or profile activity.
What I find interesting is, if they ever did try and do that, how might the financial authorities respond. That data could be worth millions if used to trade shares in those companies. Would it be considered insider trading? I suspect LinkedIn would be put under pressure to publish the index to avoid getting into trouble.
- aaronblohowiak 16y agoprobably not: look at how slow / weak the fed has been to react to more blatant forms of insider trading that are already in play
- dsplittgerber 16y agoI think you mean the SEC and/or the "feds" (FBI), not the federal reserve bank? The problem with insider trading is that a verdict hinges on proving intent to defraud, which is very difficult to ascertain. Also, IMHO, insider trading is mostly used as an easy way to generate publicity and give the general public the fuzzy feeling that "something is being done", whilst achieving rarely something of value for the markets and society. There are many things much more worth of pursuing with limited resources than insider trading. Alas, that's what you get when you staff an oversight agency like the SEC with lots of lawyers.